•
Feb 29, 2024

Accenture Q2 2024 Earnings Report

Accenture's financial performance remained stable with slight revenue decrease and increased EPS.

Key Takeaways

Accenture reported flat revenue of $15.8 billion, with consulting revenues at $8.0 billion and managed services revenues at $7.8 billion. GAAP EPS increased by 10% to $2.63, and adjusted EPS increased by 3% to $2.77. New bookings reached $21.6 billion. The company updated its fiscal year 2024 outlook, projecting revenue growth of 1% to 3% in local currency.

Revenues were $15.8 billion, flat compared to the second quarter of fiscal 2023.

GAAP EPS increased by 10% to $2.63, and adjusted EPS increased by 3% to $2.77.

New bookings totaled $21.6 billion, with consulting bookings at $10.5 billion and managed services bookings at $11.1 billion.

The company expects full-year revenue growth of 1% to 3% in local currency.

Total Revenue
$15.8B
Previous year: $15.8B
-0.1%
EPS
$2.77
Previous year: $2.69
+3.0%
New bookings
$21.6B
Previous year: $22.1B
-2.2%
Operating margin
13%
Previous year: 12.3%
+5.7%
Gross Profit
$4.88B
Previous year: $4.84B
+0.8%
Cash and Equivalents
$5.12B
Previous year: $6.24B
-17.9%
Free Cash Flow
$1.99B
Previous year: $2.22B
-10.5%
Total Assets
$51.3B
Previous year: $47.7B
+7.5%

Accenture

Accenture

Forward Guidance

Accenture expects revenues for the third quarter of fiscal 2024 to be in the range of $16.25 billion to $16.85 billion, or negative 1% to positive 3% in local currency. For fiscal year 2024, the company now expects revenue growth to be in the range of 1% to 3% in local currency.

Positive Outlook

  • Revenue growth of 1% to 3% in local currency is expected for fiscal year 2024.
  • GAAP operating margin for fiscal 2024 is expected to be 14.8%.
  • Adjusted operating margin for fiscal 2024 is expected to be 15.5%.
  • GAAP diluted EPS is expected to be in the range of $11.41 to $11.64.
  • Adjusted EPS is expected to be in the range of $11.97 to $12.20.

Challenges Ahead

  • Third quarter fiscal 2024 revenue is expected to be impacted by approximately negative 1% foreign-exchange impact.
  • Revenue growth outlook for fiscal year 2024 was revised down from 2% to 5% to 1% to 3%.
  • GAAP operating margin outlook for fiscal year 2024 was revised down from a range of 14.8% to 15.0% to 14.8%.
  • Adjusted operating margin outlook for fiscal year 2024 was revised down from a range of 15.5% to 15.7% to 15.5%.
  • GAAP diluted EPS outlook for fiscal year 2024 was revised down from a range of $11.41 to $11.76 to $11.41 to $11.64.